Chipotle Mexican Grill (CMG) PT Raised to $55 at Guggenheim

Guggenheim analyst Gregory Francfort raised the price target on Chipotle Mexican Grill (NYSE: CMG) to $55.00 (from $54.50) while maintaining a Neutral rating.

The analyst commented: "We are updating our estimates to get them to a place that better reflects sales headwinds for the industry over June and July. We take our full year 2024 EPS up a penny and now model a 1c beat vs. consensus in 2Q and 2c of misses in each of 3Q and 4Q. We move our price target from $54.50 ($2,700 divided by the 50-1 stock split) to $55 to reflect our slightly higher full year estimate on a similar P/E multiple, although now rolled to 2025. Shares have substantially underperformed the market over the past month (down 17% vs. a +2% S&P 500) as the company has shifted from the bucket of “positive sell-side earnings revisions” to the bucket of “negative sell-side earnings revisions” even if the move in expectations has been modest. The high multiple on the stock creates some challenges in finding a valuation floor, particularly in a market environment that is so heavily focused on momentum. But we also believe that sentiment is now quite negative for a high-quality growth company. We remain Neutral rated."

You May Also Be Interested In

• Tesla to launch Cybercab in Austin this month - report
• BofA Securities Starts Kanzhun Ltd. (BZ) at Neutral
• BWS Financial Downgrades Inter Parfums (IPAR) to Sell